A lottery industry insider installs undetectable software giving him advance knowledge of winning numbers, then enlists accomplices to play those numbers and collect the jackpots.

Eddie Tipton, the former security director of the Multi-State Lottery Association, reportedly installed software code to be able to know winning numbers.

Eddie was convicted of rigging the $16.5m jackpot in Iowa in 2015. At the moment, he is awaiting trial in four other states. The lottery security director was charged after being identified on the surveillance footage of a person buying the winning ticket for a $16.5m jackpot in 2010. Tipton, who had unparalleled access to lottery software, was identified on the footage by his colleagues.

Prosecutors say Tipton installed software known as a root kit that enabled him to manipulate numbers without a trace. What tripped him up, investigators say, was his decision to buy the winning ticket himself at a service station near the headquarters of the association, whose workers are prohibited from trying their luck.

Today there is new forensic evidence leading to charges being filed against the scammer’s younger brother, Tommy Tipton, for his role in securing jackpots in two other states, which allegedly brought him $1.2m. Tommy Tipton surrendered to authorities and was released on bail. In addition, the recently filed documents revealed that Wisconsin authorities recovered the random-number generator used for a $2m jackpot claimed 8 years ago by Eddie Tipton’s friend, who is currently fighting extradition to Iowa, where he faces charges.
So, how was it done? Investigators believe that the number generator had been hacked to predict numbers on 3 days of the year, after the system had passed a security audit. This is why all the cash prizes linked to Eddie were drawn over six years on either November 23 or December 29. According to reports, the investigators managed to recreate the draws and produce the very same winning numbers, although the program was supposed to produce random numbers that never repeat.Tommy Tipton was first investigated a decade ago when he was discovered with half a million dollars in cash in consecutively marked notes. Tommy explained he had won a share of a $4.5m jackpot and then asked a friend to collect the winnings in order to conceal the winning from his wife due to divorce considerations. Tipton’s attorney believes his client “took the high road” by surrendering rather than fighting extradition. This behaviour can be explained by the fact that Tommy Tipton used to be justice of the peace and reserve police officer, so he hopefully will be professional and responsible in his dealings.

Thirty-seven states and U.S. territories use random-number generators from the Iowa-based association, which administers games and distributes prizes for the lottery consortium. So far, Colorado, Wisconsin, and Oklahoma have confirmed paying jackpots valued at a total of $8 million allegedly linked to Tipton and associates.